Reed accepting 'exemption' for Obamacare insurance

Thursday

Dec 26, 2013 at 4:58 PM

On the brink of a government shutdown in October, U.S. Rep. Tom Reed had just one demand to continue funding federal programs: End the “exemption” that gives special subsidies to members of Congress to pay for health care under Obamacare.But starting next year, Reed will be accepting that subsidy himself.

By James Postjpost@the-leader.com

On the brink of a government shutdown in October, U.S. Rep. Tom Reed had just one demand to continue funding federal programs: End the "exemption" that gives special subsidies to members of Congress to pay for health care under Obamacare.

But starting next year, Reed will be accepting that subsidy himself.

A spokesperson for Reed's re-election campaign acknowledged to the Buffalo News that Reed would be accepting the money, stating that "Obamacare is the law," and that he was merely operating under the terms of that law.

The subsidies, sometimes called an "exemption" to Obamacare by Republicans in Congress, help members of Congress and their staff pay for health insurance through the health benefit exchanges established under the new law. They were created by an interpretation of federal rules that would allow them to continue to get the employer payment toward health insurance they've traditionally received, even though they'd be buying insurance through the Obamacare marketplaces.

Those in favor of the subsidy argued that not providing it would amount to a massive pay cut, not only for Congress, but for their staff members -- some of whom make less than $30,000 a year -- once their government-provided insurance was eliminated.

But Reed has argued extensively in the past that Congress and the executive branch should sink or swim on their own under the terms of the new health care law.

"It is not fair to support a special exemption for Congress and the President, there is no reason these groups should be treated any differently under the President's health care law," Reed said in September.

"He proposed his own bill to end this 'special treatment,' on the so-called high principles that it was a matter of fundamental fairness," Robertson said. "And then when nobody's looking, he takes the benefit."

Reed never specifically told The Leader he would refuse the subsidy if he was unable to change the law.

Reed campaign spokesperson Katherine Pudwill said Thursday it was "ironic" that Robertson would criticize Reed for following a law of which Robertson has been an outspoken supporter.

"The very law that is causing quite a headache for millions of Americans and that (Robertson) supported 100 percent," Pudwill said.

She said Reed "experienced ... sticker shock" when he went to enroll in an Obamacare health plan – implying he was led to accept the federal subsidy because coverage was unaffordable otherwise.

Pudwill said other Americans who have looked to enroll through the state or federal exchanges would understand that feeling.

The story began with reporting in the Washington Post on what members of Congress were doing about health insurance for next year. Liberal website Talking Points Memo then went through the list and noted members who were enrolling in the Obamacare insurance exchange but weren't declining the subsidies.

Talking Points Memo noted that some outspoken opponents of the rule, like senators Lindsay Graham, R-S.C., and David Vitter, R-La., had actually refused the federal contribution.

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